New Orleans, Tesla truck explosion, Gazprom and the debt ceiling
Reuters World News
Deep Dive
What happened in New Orleans on New Year's Day involving a driver with an ISIS flag?
A U.S. Army veteran, Shamsud Dinjabar, flew an ISIS flag from his truck and plowed into the crowded French Quarter in New Orleans, killing 15 people and injuring around 30. The suspect was killed in a shootout with police, and weapons and a potential explosive device were found in the vehicle.
Why is the explosion of a Tesla Cybertruck in Las Vegas being investigated alongside the New Orleans attack?
Law enforcement and the intelligence community are investigating whether there is any possible connection between the New Orleans attack and the Tesla Cybertruck explosion outside the Trump International Hotel in Las Vegas. The explosion occurred hours after the New Orleans incident, killing the driver and injuring seven others.
What impact has the end of Russian gas exports to Europe had on Gazprom?
Gazprom posted a $7 billion loss in 2023, its first since 1999. The end of Russian gas exports to Europe, due to the expiry of a transit agreement with Ukraine, has severely impacted Gazprom, which previously supplied dozens of European countries and had plans to expand globally. The loss of major EU clients has left its infrastructure and expansion plans in ruins.
How has the U.S. benefited from the end of Russian gas exports to Europe?
The U.S. gas industry has boomed, displacing Russian gas in Europe. The U.S. role in the European energy market is expected to grow further, with former President Donald Trump pressuring the EU to buy more U.S. energy or face tariffs. This shift has been a significant win for the U.S. energy sector.
What is the U.S. debt ceiling and why is it significant?
The U.S. debt ceiling, created by Congress in 1917, is a legal limit on the amount of debt the federal government can incur. It was established to streamline borrowing during World War I but has since been used as leverage by Congress, particularly Republicans, to extract spending concessions. It is seen as an artificial construct that creates unnecessary friction in global financial markets.
What measures might the U.S. Treasury take to avoid hitting the debt ceiling?
Outgoing Treasury Secretary Janet Yellen has indicated that government officials may need to take extraordinary measures by as early as January 14th to prevent the U.S. from hitting its debt ceiling and potentially defaulting on its obligations.
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